Turkcell expands virtualized network infrastructure with A10 Networks

Published 30/06/2025, 14:14
Turkcell expands virtualized network infrastructure with A10 Networks

ISTANBUL/SAN JOSE - Turkcell (NYSE:TKC) (BIST:TCELL), Turkey’s leading telecommunications company, is accelerating the virtualization of its network infrastructure with solutions from A10 Networks (NYSE:ATEN), according to a press release statement. A10 Networks, which has demonstrated impressive financial performance with an 80% gross profit margin and a strong 40% return over the past year according to InvestingPro data, continues to expand its market presence.

The telecommunications provider aims to fully virtualize its carrier-grade NAT services in the short term as part of its ongoing digital transformation. The expanded collaboration includes implementing carrier-grade networking, Gi-firewall capabilities, and integrated DDoS protection. A10 Networks maintains a strong financial position to support such partnerships, with InvestingPro analysis showing the company holds more cash than debt on its balance sheet and maintains a healthy current ratio of 4.05.

Despite global IPv4 address shortages, Turkcell has maintained service quality while supporting millions of subscribers by leveraging A10’s ThunderⓇ software solutions. The company is building on its existing deployment to extend IPv4 addressing capabilities while preparing for IPv6 adoption.

The implementation uses A10’s scale-out architecture to dynamically respond to increasing traffic and subscriber demands. Turkcell also utilizes advanced telemetry and real-time monitoring capabilities to gain visibility into network performance.

"Our collaboration with A10 Networks enables us to respond effectively to the evolving needs of our subscribers, achieving one of the highest virtualization rates globally along with significant gains in operational efficiency," said Prof. Dr. Vehbi Çağrı Güngör, chief technology officer at Turkcell.

The transition from hardware-based to software-defined infrastructure is expected to reduce physical footprint, energy consumption, and maintenance costs for the telecommunications provider.

Turkcell operates in Turkey, Belarus, and Northern Cyprus, offering voice, data, and IPTV services over mobile and fixed networks. A10 Networks, based in San Jose, California, provides security and infrastructure solutions for various network environments. The company’s financial health score is rated as GOOD by InvestingPro, which offers 12 additional investment tips and comprehensive analysis through its Pro Research Report, available as part of the subscription covering 1,400+ US equities.

In other recent news, A10 Networks has reported strong financial results for the first quarter of 2025, exceeding both earnings and revenue forecasts. The company achieved an earnings per share of $0.20, slightly above the projected $0.19, and reported revenue of $66.1 million, surpassing the expected $63.39 million. This reflects a 9% year-over-year revenue growth, with enterprise revenue notably increasing by 18%. Additionally, A10 Networks has been selected by Microsoft to secure mission-critical generative AI workloads, showcasing its capabilities in advanced threat detection for hyperscale AI deployments. This partnership underscores A10’s growing presence in the cloud security market.

Deutsche Bank has initiated coverage on A10 Networks with a Buy rating, setting a price target of $22.00. The bank highlighted A10’s high-single-digit revenue growth potential and strong profitability metrics, including gross margins above 80% and adjusted EBITDA and free cash flow margins exceeding 25%. These attributes are supported by robust cash flow margins that facilitate share buybacks and dividends, offering multiple avenues for shareholder returns. Deutsche Bank emphasized that A10 Networks has consistently maintained positive GAAP net income since 2020. In another development, A10 Networks announced the acquisition of assets and key personnel from ThreatX Protect, aiming to enhance its cybersecurity portfolio with web application and API protection capabilities.

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